It’s gentrification at work.
Despite Melbourne’s weakening property market, 13 Melbourne suburbs are on the cusp of entering the $1 million club if their median house prices stay on their current trajectory according to Nicola Powell, Domain Group’s chief data scientist.
Creeping gentrification was the driving factor for climbing medians in these suburbs as aspirational buyers move into homes vacated by an ageing, post-war immigrant population.
|Suburbs with potential||Median Price||Year on year growth||Suburbs at risk||Median Price||Year on year growth|
|Mount Martha||$970,000||6.6%||St Kilda||$1,029,000||-21.8%|
There were 111 Melbourne in that now have a $1 million median price according to Domain Group sales data from the 2017-18 financial year.
Dr Powell warned current market conditions meant suburbs with a median hovering just above $1 million were at risk of falling out of it.
“I think any suburb that’s hovering around the brink will likely see a bit of a pullback,” Dr Powell said. “In a softening market those higher price markets will lose their prices first.”
But, she said, resurgent owner-occupiers buying into aspirational suburbs were acting as a buffer for prices, as investor activity in the top of the property market pulled away.